Jiangxi Copper to up capital spend on demand boost

HONG KONG: Jiangxi Copper Co, China's largest copper producer by output, yesterday said it expects demand for the metal to recover in the second quarter this year, following a challenging first quarter.

Based on its price projection, the company will increase capital spending to 4.4 billion yuan this year, from 4.1 billion yuan in 2008, to boost production capacity, Li Yihuang, chairman of Jiangxi Copper, told reporters at a press conference in Hong Kong.

The company posted a 49.6-percent fall in net profit last year as metal prices tumbled on weak market demand, while costs, including energy and other resource surged. Net income was 2.29 billion yuan in 2008 compared to 4.53 billion yuan in the previous year.